HUMAN RESOURCES POLICY
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1 North of England Clinical Commissioning Groups HUMAN RESOURCES POLICY RETIREMENT Policy Number: HR29 Version Number: 2.0 Issued Date: May 2015 Review Date: May 2017 Sponsoring Director: Prepared By: Consultation Process: Formally Approved: Michelle McGuigan Janice Chalmers Partnership Forum CCG Ratification Process Policy Adopted From: Approval Given By: BSA HR29 Retirement Policy n/a Document History Version Date Significant Changes 1.0 April 2013 n/a 2.0 May 2015 n/a Equality Impact Assessment Date Issues None Policy Validity Statement This policy is due for review on the latest date shown above. After this date, policy and process documents may become invalid. Policy users should ensure they are consulting the currently valid version of the documentation. CCG Retirement Policy May 2015
2 CONTENTS 1.0 POLICY STATEMENT PRINCIPLES PROCEDURE EQUALITY STATEMENT MONITORING AND REVIEW 4 Part 2 PROCEDURE 5 Appendix 1 EQUALITY IMPACT ASSESSMENT 9 CCG Retirement Policy May
3 1. POLICY STATEMENT 1.1 This policy is designed to assist employees who are considering or have taken the decision to retire from service and outlines the options available and support that can be expected from management. 2. PRINCIPLES 2.1 The CCG does not operate a compulsory retirement age. 2.2 When considering retirement options employees should bear in mind the potential impact on their pension. 2.3 The provisions of Section 16 of NHS Terms and Conditions will apply to employees retiring early on grounds of redundancy. 2.4 The minimum retirement age for members of the NHS Pension Scheme 1995 section is 50, except for staff who joined on or returned to the scheme after 6 April 2006 for whom the minimum retirement age is 55. The minimum retirement age for members of the 2008 section is The normal retirement age for members of the NHS Pension Scheme 1995 section is 60 and age 65 for members of the 2008 section. 2.6 Employees considering retirement, particularly flexible retirement, should discuss their plans initially with their line manager. 2.7 Information on retirement options and benefits is available from an HR representative or the NHS Pensions website Employees should bear in mind that NHS Pensions requires 4 months notice of any request for payment of pension benefits. 2.9 Flexible retirement requests will be considered in line with the procedure set out in the Flexible Working policy Training and support will be provided to all Line Managers in the implementation and application of this policy. 3. PROCEDURE The Procedure for Normal Age Retirement and Flexible Retirement options is detailed at PART 2 4. EQUALITY 4.1 In applying this policy, the organisation will have due regard for the need to eliminate unlawful discrimination, promote equality of opportunity, and provide for good relations between people of diverse groups, in particular on the grounds of the following characteristics protected by the Equality Act (2010); age, disability, gender, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, CCG Retirement Policy May
4 religion or belief, and sexual orientation, in addition to offending background, trade union membership, or any other personal characteristic. 5 MONITORING & REVIEW 5.1 The policy and procedure will be reviewed periodically by Human Resources in conjunction with operational managers and Trade Union representatives. Where review is necessary due to legislative change, this will happen immediately.. CCG Retirement Policy May
5 PART 2 1. PROCEDURE 1.1 Employees who have decided that they wish to retire or are considering retirement, particularly flexible retirement, should discuss their plans initially with their line manager. Normal age retirement 1.2 Employees wishing to fully retire from work must resign from their employment, giving the appropriate contractual notice. They will be expected to take all accrued annual leave prior to their leaving date. Flexible Retirement 1.3 Flexible retirement provides flexibility regarding the age at which an employee retires, the length of time it takes to retire and the nature and intensity of work in the lead up to final retirement. It assists the organisation by retaining the skills of key employees who are approaching, or are at, retirement age and provides a greater choice for employees. Pre-retirement wind down (existing post) 1.4 An employee approaching their retirement may wish to gradually reduce the number of hours they work leading up to their actual date of retirement. 1.5 The employee should put their request in writing to their line manager, clearly outlining their proposed work pattern, start date and retirement date. 1.6 Requests will be considered in line with the procedure in the Flexible Working policy, and judged on the basis of business needs. 1.7 If a reduction in hours is agreed, the employee will be paid pro rata to hours worked. Pre-retirement step down (less demanding role) 1.8 An employee approaching retirement may request to continue working in a less demanding role. 1.9 The employee should put their request in writing to their line manager, clearly outlining their proposed role, hours of work, start date of the arrangements and retirement date Requests will be considered in line with the procedure in the Flexible Working policy, and judged on the basis of business needs If a change in role is agreed, the employee will be paid the appropriate rate for that post. If there is a reduction in working hours, the employee will be paid pro rata to hours worked. CCG Retirement Policy May
6 1.12 Members of the NHS Pension Scheme who are over the minimum retirement age, and whose pay reduces by at least 10%, may apply for the higher rate of pay to be protected for pension purposes. The application must be made within 15 months of the date the rate of pay is reduced When the employee leaves, their pension, up to the date they stepped down, will be based on the higher rate of pay, and their pension earned after the step down date will be based on the reduced rate of pay. Cost of living increases will be applied to the protected higher rate of pay and both pensions will be added together for payment. Retire and come back to work 1.14 Under the provisions of the NHS Pension Scheme, employees have the option to retire from service and take all their pension benefits before returning to NHS employment Employees considering this option, who have NHS Pension Scheme membership prior to 5th April 1997, must request the Guaranteed Minimum Pension (GMP) check from the Pensions Officer in the first instance. Retirement cannot go ahead unless the GMP check has been passed Employees considering this option, and who wish to return to CCG employment, must make their request in writing, to their line manager, as far in advance as possible. The request must include the proposed retirement date and when, and in what capacity, the individual would like to return to work afterwards Requests to return to work will be considered in line with the procedure in the Flexible Working policy, and judged on the basis of business needs If the request is agreed, there must be at least a 2-week break between employments, to include a minimum 24-hour break in pensionable employment to satisfy the requirements of the NHS Pension scheme Members of the 1995 section must work less than 16 hours per week within one calendar month of retirement, and/or be under the normal retirement age, to avoid their pension being suspended. This restriction does not apply to members of the 2008 section Employees who are in receipt of any earnings related protection will lose that protection on their return to work following the break in service Once an employee retires and receives their pension benefits in relation to their NHS service, this service will no longer be counted as reckonable for redundancy purposes (para 16.6 of NHS Terms and Conditions). Where an employee takes their pension benefits and returns to work at the organisation, reckonable service will begin from the date of return to employment after the break in service Employees who retire and take their pension benefits before returning to work will not be able to re-join the NHS Pension Scheme. CCG Retirement Policy May
7 Draw down (partial retirement) 1.23 Members of the NHS Pension Scheme 2008 section may elect to partially retire and take some of their benefits. To do this the employee must have reached at least the minimum retirement age of 55 and have reduced their pensionable pay by at least 10% Between 20% and 80% of pension entitlement may be taken and pension membership will continue to build up. Pensionable pay must remain reduced for at least a year otherwise eligibility to a pension will cease. Benefits can be drawn down twice before final retirement. Voluntary early retirement (VER) 1.25 An employee may opt to take VER at any time from the minimum pension age applicable to the scheme they are, or have been, a member of provided they have at least 2 years membership. The minimum retirement age is 50 for members of the NHS Pension Scheme section, and 55 for members of the NHS Pension Scheme section. For employees who joined the NHS Pension Scheme 1995 section for the first time on or after 6 th April 2006, or previously left the Scheme before 31st March 2000 with deferred benefits and rejoined on or after 6th April 2006, the minimum retirement age is An estimate of pension benefits can be requested from the Pensions Officer however, final figures will be calculated by NHS Pensions. Employees considering VER, who have NHS Pension Scheme membership prior to 5th April 1997, must request the Guaranteed Minimum Pension (GMP) check from the Pensions Officer in the first instance. VER cannot go ahead unless the GMP check has been passed To leave employment due to voluntary early retirement the employee must resign from their employment, giving the appropriate contractual notice. They will be expected to take all accrued annual leave prior to their leaving date. Late retirement 1.28 Employees who remain in employment beyond the normal retirement age, and remain in the NHS Pension Scheme, may continue to earn benefits to age 75 or until they reach 45 years membership. There are no provisions to increase benefits for members of the 1995 section if they are paid late. Members of the 2008 section will have any pension earned before age 65 increased to take account of the fact that it is being paid later than the normal retirement age. Ill Health Retirement 1.29 When an employee becomes incapable of carrying out their duties on a permanent basis, and no reasonable adjustments can be made or suitable alternative employment secured (see Redeployment policy), the employee may wish to apply to NHS Pensions for retirement on the grounds of ill-health. This option is only available to employees who have two years continuous pensionable NHS service If an application for ill-health retirement is made, this constitutes a mutual decision that the employee is unable to fulfil their contractual obligations due to their ill-health condition and therefore a termination date will be agreed between the individual and their line manager. CCG Retirement Policy May
8 1.31 Where ill-health retirement is identified as an option, the employee will be provided with an estimate of pension benefits via Human Resources or from the Pensions Officer. The application must be made on the appropriate form which is available from the NHS Pensions Agency Medical advisers, appointed by NHS Pensions, will assess the available medical evidence and will confirm whether the employee is permanently incapable of carrying out either their present NHS duties or any regular work. A Tier 1 or enhanced Tier 2 pension may be paid dependent upon this decision. Further information may be obtained from an HR adviser in the first instance. CCG Retirement Policy May
9 Appendix 1 Title of the change proposal or policy: Retirement Equality Analysis Initial Assessment Brief description of the proposal: To ensure that the policy amends are fit for purpose, that the policy is legally compliant, complies with NHS LA Standards and takes account of best practice. Name(s) and role(s) of staff completing this assessment: Theresa Gavin HR Management Trainee Date of assessment: 13 th December 2012 Please answer the following questions in relation to the proposed change: Will it affect employees, customers, and/or the public? Please state which. Yes it will affect all employees. Is it a major change affecting how a service or policy is delivered or accessed? No Will it have an effect on how other organisations operate in terms of equality? No If you conclude that there will not be a detrimental impact on any equality group, caused by the proposed change, please state how you have reached that conclusion: No anticipated detrimental impact on any equality group. The policy adheres to the NHS LA Standards, AFC Terms and Conditions, is legally compliant and takes account of best practice. Makes all reasonable provision to ensure equity of access to all staff. There are no statements, conditions or requirements that disadvantage any particular group of people with a protected characteristic. Please return a copy of the completed form to the Equality & Diversity Manager CCG Retirement Policy May
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